MBA 601 Mod 6 Quizzes | Questions and Answers | 2025 Update | 100% Correct.
Question 1 pts
Which of the following has a single owner?
Federal government
Partnership
Corporation
Sole proprietorship
The answer is self-explanatory.
Question 2 pts
Partnerships are frequently managed by the owners of the business. This
statement is
True
False
Many professionals such as doctors, lawyers, and accountants organize their
practices as partnerships. The professionals not only own a part of the
business but also participate in managing the organization.
,Which of the following is a disadvantage of a corporate form of business?
Limited liability Transferability of ownership Double taxation
Continuity of existence
Double taxation is a disadvantage of a corporate form of business. The others are all
advantages.
Question 4 pts
Which of the following first required corporations to file quarterly and annual
financial statements that are prepared in accordance with Generally Accepted
Accounting Principles?
Securities Act of 1933
Securities Act of 1934
Sarbanes Oxley Act
Fair Disclosure Act
The answer is self-explanatory.
,2/22/25, 8:35 LO 11-1: Identify the primary characteristics of sole proprietorships...(Pre-req. LO3-2): SP2025 MBA 601-QL/QX
AM Accounting / Finan…
Alpha Associates was organized on January 1, Year 1. Alpha was organized as a partnership.
Alpha reported $200,000 of before tax income during Year 1 and the partners withdrew
$30,000 from the company. Assuming a corporate income tax rate of 30% and a personal
income tax rate of 15%, the total amount of tax collected by the government is
$30,000.
$64,500.
$60,000.
$90,000.
The government would collect $30,000 ($200,000 × .15) from the partners who would be
taxed at their personal tax rate. Partners are taxed on their share of total partnership
income regardless of how much of the income is withdrawn from the partnership. There
would be no corporate income tax required.
Question 6 pts
Alpha Associates was organized on January 1, Year 1. Alpha was organized as a
corporation. Alpha reported $200,000 of before tax income during Year 1 and paid a
$30,000 cash dividend to its stockholders. Assuming a corporate income tax rate of
30% and a personal income tax rate of 15%, the total amount of tax collected by the
government is
$60,000.
$64,500.
$69,000.
$90,000.
https://uab.instructure.com/courses/1647797/quizzes/2356117? 3/
module_item_id=18296109 6
, 2/22/25, 8:35 LO 11-1: Identify the primary characteristics of sole proprietorships...(Pre-req. LO3-2): SP2025 MBA 601-QL/QX
AM Accounting / Finan…
The government would collect $60,000 ($200,000 × .30) from the corporation and
$4,500 ($30,000 × .15) from the stockholders.
Therefore, the total tax collected by the government is $64,500 ($60,000
+ $4,500). The corporate form of business structure results in double taxation. The
income is taxed first at the corporate level and then again at the personal level
when dividends are paid to the owners.
Question 7 pts
In a business organized as a sole proprietorship, retained earnings and capital
acquired from owners are combined is a single account. This statement is
True
False
The proprietorship form of business organization does not distinguish
between retained earnings and capital collected from owners. Both sources
of assets are shown in a single account called owner capital.
Question 8 pts
Crowe Company began operations on January 1, Year 1. The company was
organized as a sole proprietorship. During Year 1, Crowe acquired $40,000 of capital
from John Crowe, the owner. Also, during Year 1 the company earned net income of
$20,000 and John Crowe withdrew $15,000 from the business. Based on this
information, the Company would show
$5,000 of retained earnings on its Year 1 balance sheet.
$45,000 of retained earnings on its Year 1 balance sheet.
https://uab.instructure.com/courses/1647797/quizzes/2356117? 4/
module_item_id=18296109 6
Question 1 pts
Which of the following has a single owner?
Federal government
Partnership
Corporation
Sole proprietorship
The answer is self-explanatory.
Question 2 pts
Partnerships are frequently managed by the owners of the business. This
statement is
True
False
Many professionals such as doctors, lawyers, and accountants organize their
practices as partnerships. The professionals not only own a part of the
business but also participate in managing the organization.
,Which of the following is a disadvantage of a corporate form of business?
Limited liability Transferability of ownership Double taxation
Continuity of existence
Double taxation is a disadvantage of a corporate form of business. The others are all
advantages.
Question 4 pts
Which of the following first required corporations to file quarterly and annual
financial statements that are prepared in accordance with Generally Accepted
Accounting Principles?
Securities Act of 1933
Securities Act of 1934
Sarbanes Oxley Act
Fair Disclosure Act
The answer is self-explanatory.
,2/22/25, 8:35 LO 11-1: Identify the primary characteristics of sole proprietorships...(Pre-req. LO3-2): SP2025 MBA 601-QL/QX
AM Accounting / Finan…
Alpha Associates was organized on January 1, Year 1. Alpha was organized as a partnership.
Alpha reported $200,000 of before tax income during Year 1 and the partners withdrew
$30,000 from the company. Assuming a corporate income tax rate of 30% and a personal
income tax rate of 15%, the total amount of tax collected by the government is
$30,000.
$64,500.
$60,000.
$90,000.
The government would collect $30,000 ($200,000 × .15) from the partners who would be
taxed at their personal tax rate. Partners are taxed on their share of total partnership
income regardless of how much of the income is withdrawn from the partnership. There
would be no corporate income tax required.
Question 6 pts
Alpha Associates was organized on January 1, Year 1. Alpha was organized as a
corporation. Alpha reported $200,000 of before tax income during Year 1 and paid a
$30,000 cash dividend to its stockholders. Assuming a corporate income tax rate of
30% and a personal income tax rate of 15%, the total amount of tax collected by the
government is
$60,000.
$64,500.
$69,000.
$90,000.
https://uab.instructure.com/courses/1647797/quizzes/2356117? 3/
module_item_id=18296109 6
, 2/22/25, 8:35 LO 11-1: Identify the primary characteristics of sole proprietorships...(Pre-req. LO3-2): SP2025 MBA 601-QL/QX
AM Accounting / Finan…
The government would collect $60,000 ($200,000 × .30) from the corporation and
$4,500 ($30,000 × .15) from the stockholders.
Therefore, the total tax collected by the government is $64,500 ($60,000
+ $4,500). The corporate form of business structure results in double taxation. The
income is taxed first at the corporate level and then again at the personal level
when dividends are paid to the owners.
Question 7 pts
In a business organized as a sole proprietorship, retained earnings and capital
acquired from owners are combined is a single account. This statement is
True
False
The proprietorship form of business organization does not distinguish
between retained earnings and capital collected from owners. Both sources
of assets are shown in a single account called owner capital.
Question 8 pts
Crowe Company began operations on January 1, Year 1. The company was
organized as a sole proprietorship. During Year 1, Crowe acquired $40,000 of capital
from John Crowe, the owner. Also, during Year 1 the company earned net income of
$20,000 and John Crowe withdrew $15,000 from the business. Based on this
information, the Company would show
$5,000 of retained earnings on its Year 1 balance sheet.
$45,000 of retained earnings on its Year 1 balance sheet.
https://uab.instructure.com/courses/1647797/quizzes/2356117? 4/
module_item_id=18296109 6
